If you operate a motor vehicle that crosses state lines, you are required to file International Fuel Taxes quarterly. The fourth quarter taxes from 2014 are due right around the corner on January 31st – are you ready? Don’t forget that Office Tenders can help you stay compliant with the International Fuel Tax Agreement (IFTA)!
Who Is Responsible for Fuel Taxes and How It Works
Before you have to worry about filing fuel taxes, you must first register for the International Registration Plan (IRP) tag and the IFTA decals. Keep in mind that these expire every year, and you must re-register prior to December 31st or risk penalties. Vehicles that only operate in one state (intrastate) are not required to go through this process.
To stay compliant, trucking companies must file their fuel tax reports quarterly for all commercial motor vehicles that travel in more than one state. Typically, it is the carrier that is responsible for this. For leased trucks, fuel taxes should be covered in the lease agreement to avoid any confusion about who is responsible. Even if no taxable miles were driven, you must still go through the process.
The IFTA allows your local department to collect the taxes for fuel you purchased, no matter where it was bought. This simplifies the whole process for everyone, as the state you are headquartered in distributes all of the taxes as needed.
Stay Prepared for Fuel Tax Reporting
It is crucial to maintain accurate records throughout each quarter to ensure that you are well prepared for fuel tax reporting. You don’t want to be sifting through receipts with the deadline looming because filing late can mean assessments. Late fees can either be $50 or an additional 10% of the taxes due, whichever amount is larger.
So how to stay well-prepared? Partnering with a third party DOT paperwork service provider like Office Tenders is a great step. And our affordable IFTA services become even more affordable when you provide good records!
Make sure to keep all trip sheets for 4 years. Examples of what should be detailed with all trip sheets include:
- Date of trip
- Route
- Trip miles
- Miles driven in each state
- Fuel receipts
Fuel Tax Reporting Made Simple
In addition to new changes to jurisdiction listings, this year will see many more states moving to electronic filing of fuel taxes. Michigan, for example, is now completely electronic with no options for paper filing. And this isn’t just for actual quarterly reporting – you can now access your account, apply for a 2015 IFTA license, and renew your existing one.
And at between only $5 and $25 per truck per month, Office Tenders ensures that your fuel tax reporting is as uncomplicated as possible and reasonably priced. You will receive complete, thorough reports by truck and for the whole fleet and we will even complete the electronic tax filing for you! Why waste your time when you could keep fuel tax reporting simple?
